Zhang Wenlang, chief macro analyst at CICC's research department, released the latest market review saying that observing the Chinese economy depends not only on changes in short-term demand, but also on the accumulation of medium- to long-term supply capacity. In recent years, China's investment in innovation has continued to increase, the competitive advantage of the manufacturing industry has gradually extended to more technology-intensive fields, and the localization rate has steadily increased. Technological innovation and domestic substitution promote each other and are providing more lasting support for economic growth and industrial upgrading. Looking forward to the future, Zhang Wenlang pointed out that the deepening of domestic substitution has also provided more application space for subsequent technological innovation. After equipment and components enter actual production, companies can continue to improve based on customer feedback, accumulate experience and revenue, and then invest in the next round of R&D. Even when the overall localization rate of the manufacturing industry is already high, there is still room for continued improvement in some technology-intensive industries. As more innovative achievements are implemented and transformed in the industrial chain, domestic substitution is expected to create conditions for relevant enterprises to expand their markets, enhance their competitiveness, and further enhance the momentum of economic growth.

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